∙ On February 26, HLB signed a binding term sheet with Adenchen Laboratories, the original developer of Rivoceranib, to acquire global rights (including China) to Rivoceranib.
∙ The total acquisition amount is 50 million dollars, and a significant portion of this is decided to be paid in HLB shares. By doing so, HLB will secure global rights to Rivoceranib held by Dechen and will receive royalties from Hengrui Medicine from this year, starting with the sales of Rivoceranib as of 2019.
∙ However, despite the fact that the agreement on the detailed terms of the contract for the acquisition of rights has already been completed as previously announced, the legal review of some major documents to be approved by the three countries (Korea, the United States, China) has been delayed due to the influence of COVID-19.
∙ Accordingly, on July 28, HLB signed an agreement with Adenchen to extend the deadline for binding term sheets. Considering the seriousness of COVID-19 in the United States, the validity date was set until September 30. All other terms of the transfer of rights other than the extension of the term will remain in effect as before.
We will do our best to ensure that this contract is concluded as soon as possible.